The House of Representatives has mandated all tertiary institutions across Nigeria to refund tuition fees paid by students before receiving disbursements from the Nigerian Education Loan Fund (NELFUND).
This move comes amid concerns over fraudulent practices in the disbursement process.
The directive was part of an urgent motion sponsored by Aliyu Mustapha Abdullahi, the member representing Ikara Kubau Federal Constituency in Kaduna State, during a plenary session on Tuesday.
Abdullahi called for an investigation into reports of mismanagement, highlighting “lack of proper verification” and the “upload of inflated school fees on the NELFUND portal” as major issues affecting the programme’s integrity.
While calling for transparency and accountability, Mr Abdullahi commended the Federal Government for the strides made in student loan accessibility.,
“Significant progress has been made in the programme so far, with over half a million applicants and the disbursement of over N54 billion to beneficiaries across the country,” he said.
Following the adoption of the motion, the House urged NELFUND to adopt advanced IT solutions to enhance the verification processes and streamline the loan disbursement system.
This is aimed at reducing fraud and improving the efficiency and fairness of the loan allocation.
The House further directed NELFUND to report any violations by institutions to the relevant authorities and ensure strict sanctions are applied to schools found contravening the Student Loan Access Act or NELFUND guidelines.
The investigation into alleged fraud in the disbursement of student loans by the Nigerian Education Loan Fund (NELFUND) began with a probe initiated by the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
It further explained that under the current system, tuition fees are paid directly to verified institutions, while allowances are disbursed to authenticated student accounts, with all transactions tracked digitally.